First quarter home sales outpace 2016 production

LAS CRUCES - Local Realtors sold a total of 356 new and existing homes, townhomes and condominiums between January 1 and March 31 of this year, an increase of 30 units, or 9.2 percent, over the 326 homes sold during the first quarter of 2016, according to statistics from the Las Cruces Association of Realtors. This year’s increased production was less dramatic than the gains posted between the first quarters of 2015 and 2016, when 38 additional home sales represented a 13.2 percent year-over-year increase.

Sales production and prices of existing homes posted the biggest gains, rising by 28 units and $10,309, respectively, over last year’s numbers. This year’s first-quarter average existing-home price was $177,153. New-home sales increased slightly to 38 units, up from 36 units last year. This year’s average new-home price of $187,155 was just over $24,000 below last year’s average price of $211,189.

Home sales.(Photo: Courtesy)

In a press release issued on April 6, Freddie Mac reported that the 30-year conventional mortgage rate stood at 4.10 percent, down 10 basis points from January when the rate hit this year’s high of 4.20 percent. Last year at this time the rate was 3.59 percent.

The 15-year rate also declined slightly, falling to 3.36 percent from the previous week’s rate of 3.39 percent. The rate stood at 2.88 percent one year ago. Government-backed loans, such as FHA and VA, typically carry slightly lower rates than do conventional loans.

So, there you have it. New-home sales are up slightly, but prices are soft. Sales and prices of existing-homes both continue to increase, while mortgage rates have declined slightly from their January highs.